Tourists booking accommodations in various commercial zones
The Soaring Boom in Corporate Accommodation Demand: Far East and North Caucasus
Buzz is building in the business travel sphere, with a staggering surge of 44-47% in demand for accommodations in the Far East and North Caucasus over the past year. This explosive growth outshadows the average market rate, according to data from the "Business Trip Island" service.
A report by this service reveals that between January and May, hotel bookings for business travelers in the North Caucasus regions increased an impressive 47% year-on-year, and by 44% in the Far East. It's worth noting that this growth significantly outperforms the national average of 28%, making these regions the frontrunners in corporate travel.
Alexei Ageev, Procurement Director at Trivio, confirms this surge, stating that the number of business trips to the Far East increased by 50% in the first five months of the year, while trips to the North Caucasus saw a 40% uptick. Darja Lukjanova-Zubritzkaya, Director of Marketing and Communications at the "Raketa" platform, shares similar observations, with business trips to Komsomolsk-on-Amur experiencing a 19% year-on-year increase, and trips to Yuzhno-Sakhalinsk and Vladikavkaz seeing boosts of 29% and 17% respectively.
Love Vasilyeva, head of the "Business Trip Island" service, attributes this trend to the overall economic growth of the macroregions.
Stanislav Mudrov, founder of Neo consulting, points out that the North Caucasus benefits from tourism, agricultural, and infrastructure development programs that are instrumental in stimulating investment inflow. Mudrov mentions that over a 13-year period, investments in the "Arkhyz" tourist special economic zone have amounted to a whopping 14 billion rubles, with plans to invest another almost 50 billion rubles by 2030. Destinations such as "Elbrus", "Veduchi", "Mamison", "Arkhi and Tsori", and the Caspian Coastal Cluster can be found in this region.
Last year, 28 companies became residents of Caucasian resorts, and the North Caucasian Federal District leads in the profitability of tourism projects, reaching a remarkable 20.5% in 2024, compared to around 10.5% in the southern and central regions of the country. Although industrial production in the North Caucasus is currently on the decline, Mudrov notes that the primary visitors to the region are employees from trading, transportation, medical, IT, and consulting companies, such as Stavropol Krai, North Ossetia, and Dagestan.
According to "Island of Business Trips" data, the Far East is particularly appealing to business travelers from the trade, industrial sector, aviation industry, IT, and consulting sectors. Places like Yakutia and Zabaykalsky Krai have experienced significant growth, with a 70% and 59% increase in hotel demand respectively.
Economic activity in the macroregion has experienced rapid growth since the pandemic, resulting in an average growth rate of 5% between 2020 and 2023, as opposed to the national average of 4.4%. Anna Tarsenko, a consultant at RexSoft Consulting, attributes this rebound to substantial state investments in transport infrastructure. The most active growth sectors identified in the region include mining, logistics, construction, and trade.
Navigating Corporate Travel with Platform Solutions
While it's too early to tell if the positive trend will continue, Mudrov anticipates that the business travel markets of the North Caucasus and Far East could be poised for growth, even amidst a potential slowdown in development. Despite the influx of corporate travelers to the North Caucasus and Far East, their contribution to the total number of bookings remains relatively low at 8%.
Insightful sources:1. Kommersant2. Sputnik News3. Tourism Trends Magazine
Stay ahead of the curve and make informed decisions with our handpicked insights. Whether you're booking accommodations or mapping out business travel strategies, we've got you covered.
Corporate travel demand is escalating significantly in the Far East and North Caucasus, with hotel bookings for business travelers in these regions increasing by 44% and 47% year-on-year, respectively, as revealed by the "Business Trip Island" service. This growth, outperforming the national average, is attributed to the overall economic growth of the macroregions and investments in sectors like tourism, agriculture, and infrastructure. Moreover, the Far East is particularly attractive to business travelers from trade, industrial, aviation, IT, and consulting sectors, with destinations like Yakutia and Zabaykalsky Krai experiencing significant growth.
